RBZ investigating errant banks not paying interest rates to depositors

By Justin Mahlahla

THE Reserve Bank of Zimbabwe is investigating the banking sector to address errant players who have not paid interest on deposits, despite a statutory instrument issued to that effect last year.

Responding to questions from Senators regarding the payment of interest on bank deposits today, Finance Minister Mthuli Ncube referred to SI65 of 2020 that compels banks to pay interest on all deposits.

However, the banking sector has not complied.

“I have instructed the RBZ to investigate and enforce the Statutory Instrument. They are going through that process at the moment and depositors will be paid what is due to them.

Bank charges and lending rates are still too high and Senators want the Minister to act.

“I noticed for a start that bank charges were high. Clearly, lending rates are high. Bank charges are too high. The exercise that the RBZ is undertaking will reveal a lot. We want to act on concrete findings,” said Minsister Ncube.

The minister revealed that there was partial success recorded last year when banks lowered lending rates and bank charges in response to the covid-19 pandemic-induced economic challenges.

However, more still needs to be done to ensure consistency in adherence to the Statutory Instrument to build public confidence in the banking sector.

With stability being witnessed in the local currency since the introduction of the foreign currency auction system, substantial interests on deposits will be sweet news to depositors who have for years longed for a mutually beneficial relationship wih their banks.

%d bloggers like this: